Affiliate Marketing | Types, Commissions, Tips & Tools
Affiliate marketing is a marketing arrangement in which third-party marketers, like bloggers, influencers, or YouTubers called “affiliates,” promote products and earn a commission for each click, lead, or sale they generate for a business. Affiliate marketing is a type of performance-based marketing, meaning payment is only made when the specific, measurable action is completed.
This guide explains what affiliate marketing is, how it works, the different types, and helpful tips and tools. Quillbot’s AI Chat can also help you better understand affiliate marketing or brainstorm product ideas for your own strategy.
Key takeaways
- Affiliate marketing is a performance-based model in which businesses pay affiliates a commission for generating measurable actions, such as sales, leads, clicks, or sign-ups.
- It works through a simple process: Affiliates promote relevant products or services using trackable links, affiliate networks or platforms record conversions, and the seller pays the agreed commission.
- There are different ways to earn and different strategies to choose from. Payment models include pay per sale, lead, click, impression, and install, while affiliate approaches range from promoting products outside your niche to recommending products you personally use and trust.
- Successful affiliate marketing depends on relevance, trust, and the right tools. Choosing a focused niche, creating useful content, understanding tracking and cookie duration, and disclosing affiliate relationships can help you build and refine your strategy.
Table of contents
- What is affiliate marketing?
- How does affiliate marketing work?
- Types of affiliate marketing
- High ticket affiliate marketing
- Affiliate marketing payment models
- Affiliate marketing commission benchmarks
- Affiliate marketing tips
- Affiliate marketing software
- Affiliate marketing tools
- Frequently asked questions about affiliate marketing
- Other interesting articles
What is affiliate marketing?
Affiliate marketing is a performance-based marketing structure in which affiliates earn commissions when they successfully promote a company’s products or services. Successful promotion means generating a conversion, the concept of which is one of the fundamentals of marketing. In affiliate marketing, a conversion is most often a sale, but it may also include a click, a lead, or a sign-up, depending on the affiliate program.
Most often, affiliate marketing is business-to-consumer (B2C), meaning that individual consumers are the ones making purchases and triggering the commission for the affiliate. However, although they’re less common, business-to-business (B2B) programs also exist. In this context, there are often various people involved in the decision-making.
How does affiliate marketing work?
Affiliate marketing works thanks to four key players, as outlined in the table below.
| Player | Also known as | Role | Examples |
|---|---|---|---|
| Seller | Merchant Advertiser |
The company that produces and sells the product or service being promoted | A clothing brand, software company, or online retailer |
| Affiliate | Publisher | The marketer who promotes the products or services and earns a commission on qualifying sales or actions | A blogger, YouTuber, influencer, or website owner |
| Affiliate network | Affiliate platform | A network that connects merchants with affiliates and often manages affiliate links, tracks referrals and sales, and processes commissions | Awin, CJ, or Amazon Affiliates |
| Consumer | Customer | The person who buys the product or service through the affiliate’s promotion | A reader who clicks an affiliate link and purchases the recommended product |
Simply put, affiliate marketing works like this:
- An affiliate makes a deal with a seller to promote their products or services, often through an affiliate network, and earn a commission for each conversion.
- The affiliate creates content that promotes the seller’s products or services.
- A consumer sees the affiliate’s content and makes a purchase (or clicks a link, fills in a form, signs up for a service, etc.) because of it.
- The affiliate network tracks the conversion.
- The seller pays the affiliate the agreed-upon commission.
An affiliate network isn’t strictly necessary to make affiliate marketing work. But in most present-day affiliate relationships, where digital content and personalized URLs are used to track conversions and pay commissions, a network is usually preferred.
Types of affiliate marketing
There are three main types of affiliate marketing, with the key differences being the relationship between the affiliate and the product. These are:
- Unattached affiliate marketing: The affiliate has no connection to the product or authority in the product niche. This type of affiliate marketing requires minimal effort and commitment, but it also holds the least credibility with audiences. Affiliates may be able to drive traffic by mentioning products or services or running ads for sellers, but they’re not targeting an engaged niche that already trusts their opinions and recommendations.
- Related affiliate marketing: The affiliate promotes products that they have not personally tried and tested but that fit into their online niche. For example, a beauty blogger might promote a recently launched beauty brand before they try out the brand’s products. This type of affiliate marketing usually plays out on blogs, podcasts, or in videos on social media. The affiliate’s authority in the niche carries weight here, and they know they’re driving qualified traffic, but this type of affiliate marketing can backfire if the quality of the products or services disappoint consumers.
- Involved affiliate marketing: The affiliate promotes products that they personally use and trust, which allows them to offer authentic recommendations and build credibility among their audience. This is the strongest type of affiliate marketing, as readers trust honest and authentic opinions more than anything else, but this strategy also takes the most time and dedication to set up. It works best for bloggers, YouTubers, and content creators who are committed to nurturing long-term relationships with their audiences, and that doesn’t happen overnight.
- Unattached: The blogger runs an ad for the brand but has no particular knowledge of or connection to luggage. They earn a commission if someone clicks their affiliate link and makes a purchase.
- Related: The blogger regularly writes about travel gear and has an audience interested in luggage, but they haven’t personally used this particular suitcase. They recommend it because it fits their niche and appears relevant to their readers.
- Involved: The blogger has used the suitcase on several trips and genuinely recommends it based on their own experience. They can explain its features, benefits, and drawbacks to their audience, plus add photos and videos of the product in action.
High ticket affiliate marketing
High-ticket affiliate marketing is a method used to promote expensive products or services with a longer period of investment. This strategy also brings in larger commissions, sometimes ranging from $100–1,000 per sale. Some niches addressed by high-ticket affiliate marketing are:
- Software: Business tools and subscriptions with recurring monthly pay, often sold by SaaS companies
- Finance and legal: Premium-grade consulting or advisory services
- Luxury: High-end consumer items, luxury travel packages, or premium wellness services and spa memberships
- Fitness: High-ticket fitness gear, exercise machines, or other heavy equipment
- Online courses: High-value training, masterclasses, and professional certifications
These markets logically have longer decision-making cycles, often involving various stakeholders. For instance, a company looking for a new project management software won’t make their decision as quickly as a consumer who needs to buy new sneakers. On top of this, high-ticket affiliate marketing requires a very high level of trust. High-ticket affiliate content must be extremely clear, comprehensive, honest, and expert-level in order to spark conversions. Buyers need to trust the affiliate completely before making a purchase.
Even though high-ticket affiliate marketing is more difficult to set up and takes longer to reap benefits, the good news is that far fewer sales are needed to generate the same amount of commission than with lower-priced consumer items.
- Standard affiliate marketing: A lifestyle blogger promotes a $100 pair of running shoes with a 5% commission. Each sale earns the affiliate $5, so they need 200 sales to generate $1,000 in commissions.
- Hig- ticket affiliate marketing: A business software affiliate promotes a $2,000 annual project management subscription with a 20% commission. Each qualifying sale earns the affiliate $400, so just 3 sales would generate $1,200 in commissions.
The high-ticket affiliate needs fewer sales or conversions to earn the same amount of money. But the higher price also means a longer sales cycle, more research, and more trust-building before a customer is ready to buy.
Affiliate marketing payment models
Affiliates always earn commissions on the conversions they generate, but those commissions vary depending on the payment model used. There are various payment models for affiliate marketing, and the most common ones are explained in the table below.
| Payment model | Payment triggered by | How it works | Best suited to |
|---|---|---|---|
| Pay per sale (PPS) or “revenue share” | Completed purchase | The affiliate receives a percentage of the sale price or a fixed commission for each qualifying purchase generated through their referral. | E-commerce, digital products, subscription services, and marketplaces |
| Pay per lead (PPL) | Qualifying lead or sign-up | The affiliate receives a commission when a referred user completes a specified lead-generating action, such as submitting a form, requesting a quote, subscribing to an email list, or starting a free trial. | B2B software-as-a-service (SaaS), finance, insurance, and high-ticket services with longer sales cycles |
| Pay per click (PPC) | Qualifying click | The affiliate receives a small payment for each qualifying click that sends a user to the merchant’s website or landing page. | High-traffic websites, content publishers, and review sites |
| Pay per impression (CPM) | Specified number of impressions or views | The affiliate is paid a fixed amount for every 1,000 times an advertisement or promotional placement is displayed. | Display advertising, banner placements, and brand awareness campaigns |
| Pay per install (PPI) | A qualifying installation | The affiliate receives a fixed payment when a referred user downloads and installs an app or software. | Mobile apps, games and software |
There are other payment models, too, and some of them are considerably more complex than these. For example, affiliate programs may use tiered commissions, recurring commissions, hybrid payment structures, or bonuses based on performance or sales volume.
Affiliate marketing commission benchmarks
These commission benchmarks can help you get a sense of what you might be able to earn from affiliate marketing. These are broad benchmarks researched at the time of writing. Commission rates vary depending on various factors, including location, seasonality, and niche. Further, actual affiliate rates can fall outside these ranges or may use recurring or hybrid models instead of a flat fee or simple percentage of a sale.
| Product/service type | Typical commission rate | Key factors affecting rates |
|---|---|---|
| Fashion and apparel | 5%–15% | Margins, competition, seasonality, average order value, net sales after returns |
| Beauty and personal care | 5%–20% | Product margins, brand loyalty, influencer marketing |
| Home and lifestyle | 3%–20% per sale | Product margins, order value, seasonality |
| Consumer electronics and gear | 1%–15% per sale | Often thin margins, strong competition, price sensitivity |
| High-ticket physical goods | 3%–10% per sale | High order values, lower margins, product category |
| Health and wellness | 5%–40% per sale or subscription; $20–500 per telehealth referral | Margins, customer trust, niche audiences, product type |
| Travel and hospitality | 2%–10% per booking | Booking value, destination, seasonality, commission structure |
| Digital products and online courses | 20%–50%+ per sale | High margins, low production and distribution costs, instant delivery |
| SaaS and subscriptions | 15%–30%+ per sale | Recurring revenue, customer lifetime value, retention |
| B2B software and services | 10%–30% per first contract; 15–30% for recurring subscriptions | Contract value, customer lifetime value, long sales cycles |
| Financial services | $30–500 for high-value action; $3–50 for signups and account creations | Product type, customer lifetime value, acquisition costs, regulatory requirements |
| Insurance | $3–55 per lead; $65+ per sale | Policy type, customer value, insurer’s commission structure |
Affiliate marketing tips
These tips explain some of the technical aspects of affiliate marketing and strategies for finding the right audience and increasing the chances that your recommendations lead to commissions.
Focus your niche
Choose a topic that you understand well and are passionate about and focus your content around that. A focused niche won’t reach as many people, but it makes it easier to establish your expertise and create relevant content for an audience genuinely interested in the products you recommend.
Decide on your niche topic, and then develop content pillars that support it. From there, look for products or services to promote that align with your content. Over time, adjust your strategy, too. Use audience insights (e.g., demographics, survey responses, and blog comments) to better target the topics and products your audience is interested in.
You could develop content pillars such as:
- Equipment: espresso machines, grinders, French presses, and coffee makers
- Brewing techniques: espresso, pour-over, French press, and cold brew
- Coffee beans: types of beans, roasts, origins, and subscriptions
- Buying guides: comparisons and reviews of coffee equipment
You could then look for affiliate programs that offer products relevant to these topics. As your audience grows, you could use analytics, surveys, and reader comments to identify which topics generate the most interest and adjust your content and product recommendations accordingly.
Understand affiliate links
An affiliate link is a unique URL that contains a tracking ID. This tracking ID records when a consumer clicks through your link and makes a purchase, showing that you were the one who promoted the sale.
Depending on the affiliate program, these links look a bit different. A few examples of what affiliate links might look like are:
- www.merchantwebsite.com/product1/?ref=123
- www.merchantwebsite.com/?ref=kate1212
- www.affiliateprogram.com/click.php?mid=1234&id=9876
In the first two examples, there are tracking parameters to identify the affiliate. In the third, which is a link to the affiliate program website—not the merchant website—there are tracking parameters to identify both the affiliate and the merchant. Make sure you understand which link to include in your content plus what the tracking parameters look like and stand for so that you don’t unintentionally leave something out or route consumers away from the sale.
Learn about cookie duration
Affiliate programs also use tracking cookies to identify customers who have been referred by an affiliate. “Cookie duration” refers to the period of time during which an affiliate can earn a commission after someone clicked their link.
In other words, cookie duration is the “time limit” for commissions. For example, imagine an affiliate program has a 30-day cookie duration. Someone clicks your affiliate link today but doesn’t make a purchase until two weeks from now. You’d still receive the commission if you’re within the cookie duration.
The table below outlines the typical cookie duration for some different industries whose products are commonly promoted via affiliate marketing. Cookie periods vary between programs, so always check the terms of your affiliate program or agreement before promoting a product.
| Industry | Typical duration | What it means |
|---|---|---|
| Fashion and apparel | 1–30 days | Programs commonly give affiliates several days or weeks to receive credit for a referred purchase, but fast fashion companies and industry giants may have shorter periods. |
| Beauty and personal care | 7–30 days | The customer generally has a set period after clicking the affiliate link to complete a qualifying purchase. Cookie duration is often higher for items that cost more or have longer consideration cycles, like skincare devices, anti-aging routines, and supplements. |
| Travel and hospitality | 30–90 days | Duration varies considerably because bookings may happen immediately or after a period of research. |
| Software and SaaS | 30–90 days | Longer windows can accommodate the research and decision-making involved in purchasing software. |
| Online courses and digital products | 30–90 days | A longer window can allow potential customers time to compare courses or consider a higher-priced purchase. |
| Financial services | 30–90 days | Longer attribution windows accommodate the need for more research and applications that may take time to complete or require approval. |
| Insurance | 30–90 days | The customer may need time to compare policies, submit an application, or complete the qualification process. |
Impulse-buy e-commerce websites (e.g., Amazon), viral direct-to-consumer companies (e.g., Glossier), and fashion giants (e.g., Nike) often have shorter cookie durations. A qualifying purchase generally needs to occur within 24 hours of the click, although adding an item to the cart may extend the period. Always check your affiliate program to understand the cookie duration that applies to you.
Promote honestly and transparently
The most successful affiliate marketers are essentially marketing trust. Consumers want authentic, honest recommendations. Recommend products that are genuinely relevant to your audience and provide enough information for people to make informed decisions. Where appropriate, discuss limitations or drawbacks rather than presenting every product as perfect.
You should also disclose your affiliate relationships clearly. Don’t disguise your affiliate link or make claims about a product that you can’t substantiate. If your audience trusts your recommendation enough to make a purchase, they’ll almost always be glad for you to earn a commission on that sale. However, hiding your affiliate relationship could make the audience feel like you tried to trick them, leading to them losing trust in your content.
Leverage search platforms
Search engines can help potential customers discover affiliate content when they’re actively researching a product or considering a purchase. And creating useful content that answers the questions your target audience is actually searching for can lead to commissions.
But what are they looking for? Do they want reviews? Comparisons? Tutorials? How are they phrasing their searches? Use keyword research software to discover topic ideas and search terms. Don’t focus exclusively on keywords with purchase intent; informational content can introduce people to a topic and bring them into your audience before they’re ready to buy.
Consider Pinterest, YouTube, Discord, and other social networks, too. Many people actively search for product advice and tutorials on these channels. Just remember to adapt your content appropriately for each channel.
You might discover searches such as:
- Informational: “How does a French press work?”
- Commercial: “French press vs. pour-over”
- Purchase-focused: “Best French press under $50”
These searches can be targeted with different types of content. A beginner’s guide can introduce readers to French press brewing, a comparison can help someone decide between two methods, and a buying guide can recommend specific products using affiliate links.
You could then repurpose the content for other platforms, like turning the comparison into a YouTube video, creating a visual brewing guide for Pinterest, or answering relevant questions in a Discord community where such discussions are permitted. The key is to match the content to what people are looking for on each platform rather than simply posting the same material everywhere.
Repurpose content
Repurposing content allows you to turn one piece of useful content into several formats to reach people in different places. Creating new content for every platform is time-consuming and often frustrating, and repurposing removes that friction from your content strategy.
For example, a detailed blog post comparing coffee machines could become a YouTube video, a short social media video, an infographic, or a series of posts. Each version can then direct interested users toward the original content or the appropriate affiliate offer. Quillbot’s customizable Design Templates can jumpstart your content repurposing.
Grow an email list
An email list gives you a direct way to communicate with people who have actively agreed to hear from you instead of relying on an algorithm to connect you to your audience. You can use newsletters to share useful information, product recommendations, reviews, and new content.
The goal shouldn’t be to send affiliate promotions constantly. Providing useful content helps maintain subscribers’ trust and gives you opportunities to recommend products when they’re genuinely relevant. Also, make sure to follow email marketing best practices, like making unsubscribing easy, personalizing emails, and applying consistent branding design.
Affiliate marketing software
Affiliate marketing software makes it easier for both sellers and affiliates to manage affiliate marketing, including generating affiliate links, tracking purchases, calculating commissions, and processing payouts. Some of these are management platforms, while others are online affiliate networks that connect sellers and affiliates. Find a few popular platforms and networks in the table below.
| Platform | Description | Common use cases | Key features |
|---|---|---|---|
| Awin | Network connecting sellers with affiliates and creators | Retail, fashion, travel, finance, and other consumer-focused niches | Large global network, affiliate discovery, tracking, analytics, flexible commission structures |
| CJ Affiliate | Network connecting sellers with affiliates | Established brands and publishers looking for a broad range of programs | Partner discovery, tracking, reporting, commission management, compliance, and fraud monitoring CJ.com |
| Impact.com | Partnership-management platform covering affiliates, creators, referrals, and other partnerships | Businesses managing multiple types of partnerships | Partner discovery, cross-device tracking, reporting, contracting, payments, fraud protection impact.com |
| PartnerStack | Partnership platform with a strong focus on B2B software | SaaS companies and affiliates promoting business software | Partner recruitment and management, tracking, recurring commissions, reporting |
| Rakuten Advertising | Affiliate network connecting advertisers with publishers | Brands and publishers operating across multiple markets | Affiliate tracking, publisher management, reporting, international reach |
| Refersion | Affiliate and influencer tracking platform | E-commerce businesses running their own affiliate programs | Affiliate recruitment, tracking, commission management, reporting |
| Tapfiliate | Affiliate and referral tracking software | Small and growing businesses that want to run their own program | Affiliate management, tracking, commission rules, integrations, and reporting |
If you’re an affiliate choosing a network or platform, consider the following features:
- Accurate tracking: Look for reliable tracking methods, such as cookies, pixels, tags, or server-to-server tracking, that accurately attribute clicks, leads, and sales to your affiliate links. Different platforms use different combinations of tracking methods.
- Automated payouts: Check how the platform handles commission payments and which payment methods it supports. Some platforms automate commission calculations and payouts, reducing the need for manual processing.
- Fraud detection: Fraud-monitoring tools can identify suspicious traffic, duplicate conversions, self-referrals, or other activity that may violate a program’s terms.
- Affiliate dashboard: Look for a dashboard where you can monitor clicks, conversions, commissions, and other performance data. Depending on the platform, you may also be able to generate affiliate links and access promotional materials.
The “best” option for you depends on your niche, location, experience level, and the affiliate programs you want to join. Some affiliate programs are available only through specific networks or platforms, while others can be accessed through multiple networks or directly from the merchant.
Affiliate marketing tools
Affiliate marketing involves more than finding products and adding affiliate links to your content. Apart from affiliate software, there are other tools that can help you research your audience’s interests, create useful content, design promotional materials, and track performance.
| Tool category | What it helps you do | Examples |
|---|---|---|
| Keyword research | Find search terms, questions, and topics your audience is interested in; analyze search volume and competition | Ahrefs, Semrush, Google Keyword Planner, MOZ |
| Writing and editing | Brainstorm, draft, edit, proofread, and improve the readability of affiliate content | Quillbot, Grammarly, Google Docs |
| Design | Create graphics, product comparisons, social media posts, thumbnails, and other visual content | Quillbot, Canva, Adobe Express, Figma |
| Analytics | Monitor traffic, user behavior, conversions, and the performance of affiliate content | Google Analytics, Google Search Console, platform-specific analytics |
| Link management | Organize, shorten, cloak where permitted, and monitor affiliate links across your content | Pretty Links, ThirstyAffiliates, Bitly |
Frequently asked questions about affiliate marketing
- Is affiliate marketing legit?
-
Yes, affiliate marketing is legit when done correctly, though some bad actors will try to use it to run scams.
To check that an affiliate marketing program is legitimate, check that:
- The selling company is real with real products
- The affiliate networks or mechanics used generate affiliate links and track conversions
- There is clear and detailed information about the payment model, commission rates, and cookie duration
- You’re not asked to pay to join
- The affiliate program doesn’t promise that you’ll get rich quick
- The program doesn’t force you or pay you to recruit other members
If you have doubts about whether or not a specific affiliate marketing program is legitimate, try analyzing it with Quillbot’s AI Chat.
- What is an affiliate link?
-
An affiliate link is a special URL used in affiliate marketing. It has a unique tracking ID that records the clicks, leads, and purchases coming in from an affiliate’s website or content.
The tracking IDs on these links allow merchants to “see” which affiliates generated which sales and pay commissions accordingly. A tracking ID on an affiliate link might look like “?ref=name123.”
For more on affiliate links, ask Quillbot’s AI Chat.
- How do affiliate links work?
-
Affiliate links work by tracking referrals so that an affiliate earns a commission when someone buys a product or service through their link.
In affiliate marketing, affiliates earn commissions when consumers buy things because of their recommendations. This usually happens when a consumer clicks an affiliate link, which directs them to the product or service page.
The link then registers who referred the consumer so that sellers and affiliate networks know who deserves the commission.
Quillbot’s AI Chat can answer other questions you may have about affiliate links.
- How do you create a website for affiliate marketing?
-
To create a website for affiliate marketing:
- Define your niche
- Get a domain name
- Choose a website builder (e.g., WordPress, Webflow, Squarespace)
- Publish helpful content
- Join an affiliate program and add your links
- Track performance and optimize accordingly
Quillbot’s AI Chat can walk you through this process step by step in greater detail.
- How do you find products for affiliate marketing?
-
You can find products for affiliate marketing by:
- Using affiliate networks: Join networks like Impact or CJ Affiliate to browse affiliate offers. Filter by category, commission rate, or other criteria.
- Search brand websites: Brainstorm products, services, and brands you already like. Review their websites, looking for their “affiliate program” or “partner program.”
- Check out marketplaces: Digital marketplaces like Amazon Associates offer broad opportunities in affiliate marketing.
- Ask AI for ideas: Prompt a tool like Quillbot’s AI Chat to brainstorm products and services based on your niche, location, and audience.
Just remember that it’s best to promote products and brands that authentically fit with your niche so you continue to build trust with your audience.
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